Allergan Raises Forecast After Reporting Rising Sales of Botox

(Bloomberg) -- Drugmaker Allergan Plc raised its full-year forecast on Tuesday after reporting rising sales of its flagship product, the anti-wrinkle injection Botox.

• The company expects full-year earnings of at least $16.55 a share, compared with the $16.43 average of analysts’ estimates for the year. Read a full summary of the first-quarter results here.

Key Insights

• The positive results could alleviate some of the pressure on Brent Saunders, Allergan’s chief executive and chairman. As the stock has struggled compared with many other large drug companies, a handful of investors have called for the company to split his responsibilities in two, or to divest some assets. After winning a proxy battle to keep both roles, the positive results could buy Saunders more room.
• Saunders said on a conference call that the board had engaged with more than 50 investors and was acutely aware of frustrations. He said he’s open to a split as one possible option and that there’s a sense of urgency to make changes. He didn’t specify what those might be, leaving investors with more questions than answers.
• Botox sales for the quarter were $868.4 million, handily beating the $761.8 million average of analysts’ estimates. Allergan is fighting to defend its turf as competitors are bringing new alternatives to the facial injection market that Allergan has long dominated.

Market Reaction

• The company’s shares have lost 27 percent of their value over the last five years, compared with a 37 percent gain in the S&P 500 subindex on drug companies. The stock fell 4 percent to $141.93 at 9:48 a.m. in New York.
• Read the company’s news release here.

To contact the reporter on this story: Cynthia Koons in New York at ckoons@bloomberg.net

To contact the editors responsible for this story: Drew Armstrong at darmstrong17@bloomberg.net, Mark Schoifet

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